##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended June 30, 2009
 or
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1937
 For the transition period from  to
 Commission File No. 001-16101
 BANCORP RHODE ISLAND, INC.
  Rhode Island
    
    05-0509802(State or other jurisdiction of 
incorporation or organization)
    
    (IRS Employer
Identification No.)
 ONE TURKS HEAD PLACE, PROVIDENCE, RI 02903
 (Registrants telephone number, including area code)
 (Former name, former address and former fiscal year, if changed since last report)
 þ o
 o o
  Large accelerated filer o
    
    Accelerated filer þ
    
    Non-accelerated filer o
    
    Smaller reporting company o
 o þ
  Common Stock  Par Value $0.01
    
    4,599,494 shares(class)
    
    (outstanding)




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##### 



Bancorp Rhode Island, Inc.
Quarterly Report on Form 10-Q
 
 Table of Contents
 Description
    
    Page NumberCover Page
    
    
    1Table of Contents
    
    
    2Part I  Financial InformationItem 1. Financial Statements (unaudited)Consolidated Balance Sheets
    
    
    3Consolidated Statements of Operations
    
    
    4Consolidated Statements of Changes in Shareholders Equity
    
    
    5Consolidated Statements of Cash Flows
    
    
    6Condensed Notes to Consolidated Financial Statements
    
    
    7-21Item 2. Managements Discussion and Analysis of Financial Condition
and Results of Operations
    
    
    22-43Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    44Item 4. Controls and Procedures
    
    
    45Part II  Other InformationItem 1. Legal Proceedings
    
    
    46Item 1A. Risk Factors
    
    
    46Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    46Item 3. Defaults Upon Senior Securities
    
    
    46Item 4. Submission of Matters to a Vote of Security Holders
    
    
    46Item 5. Other Information
    
    
    46Item 6. Exhibits
    
    
    47Signature Page
    
    
    48Exhibit 10.5(b)Exhibit 12.1Exhibit 12.2Exhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2
  Special Note Regarding Forward Looking Statements
    2




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##### Table of Contents



BANCORP RHODE ISLAND, INC.
 
 Consolidated Balance Sheets (unaudited)
 June 30,
    
    
    December 31,2009
    
    
    2008(In thousands)ASSETS:Cash and due from banks
    
    $
    21,740
    
    
    $
    54,344Overnight investments
    
    
    775
    
    
    
    1,113Total cash and cash equivalents
    
    
    22,515
    
    
    
    55,457Available for sale securities (amortized cost of $376,528 and $325,767,
respectively)
    
    
    376,026
    
    
    
    326,406Stock in Federal Home Loan Bank of Boston
    
    
    15,671
    
    
    
    15,671Loans and leases receivable:Commercial loans and leases
    
    
    711,639
    
    
    
    658,422Residential mortgage loans
    
    
    191,271
    
    
    
    212,665Consumer and other loans
    
    
    214,745
    
    
    
    206,655Total loans and leases receivable
    
    
    1,117,655
    
    
    
    1,077,742Allowance for loan and lease losses
    
    
    (16,905
    )
    
    
    (14,664
    )Net loans and leases receivable
    
    
    1,100,750
    
    
    
    1,063,078Premises and equipment, net
    
    
    12,511
    
    
    
    12,641Goodwill, net
    
    
    12,051
    
    
    
    12,019Accrued interest receivable
    
    
    5,071
    
    
    
    5,240Investment in bank-owned life insurance
    
    
    29,358
    
    
    
    28,765Prepaid expenses and other assets
    
    
    10,529
    
    
    
    9,697Total assets
    
    $
    1,584,482
    
    
    $
    1,528,974LIABILITIES:Deposits:Demand deposit accounts
    
    $
    205,092
    
    
    $
    176,495NOW accounts
    
    
    65,847
    
    
    
    56,703Money market accounts
    
    
    29,179
    
    
    
    4,445Savings accounts
    
    
    381,716
    
    
    
    381,106Certificate of deposit accounts
    
    
    402,839
    
    
    
    423,443Total deposits
    
    
    1,084,673
    
    
    
    1,042,192Overnight and short-term borrowings
    
    
    40,801
    
    
    
    57,676Wholesale repurchase agreements
    
    
    10,000
    
    
    
    10,000Federal Home Loan Bank of Boston borrowings
    
    
    272,040
    
    
    
    238,936Subordinated deferrable interest debentures
    
    
    13,403
    
    
    
    13,403Other liabilities
    
    
    14,376
    
    
    
    17,162Total liabilities
    
    
    1,435,293
    
    
    
    1,379,369SHAREHOLDERS EQUITY:Preferred stock, par value $0.01 per share, authorized 1,000,000 shares,
liquidation preference $1,000 per share:Issued and outstanding: Issued: 30,000 and 30,000 shares, respectively
    
    
    28,718
    
    
    
    28,595Common stock, par value $0.01 per share, authorized 11,000,000 shares:Issued: 4,964,244 shares and 4,926,920 shares, respectively
    
    
    50
    
    
    
    49Additional paid-in capital
    
    
    73,873
    
    
    
    73,323Treasury stock, at cost (364,750 and 352,250 shares, respectively)
    
    
    (12,309
    )
    
    
    (12,055
    )Retained earnings
    
    
    59,183
    
    
    
    59,278Accumulated other comprehensive (loss) income, net
    
    
    (326
    )
    
    
    415Total shareholders equity
    
    
    149,189
    
    
    
    149,605Total liabilities and shareholders equity
    
    $
    1,584,482
    
    
    $
    1,528,974
 See accompanying notes to unaudited consolidated financial statements
  3




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##### Table of Contents



BANCORP RHODE ISLAND, INC.
 
 Consolidated Statements of Operations (unaudited)
 Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2009
    
    
    2008
    
    
    2009
    
    
    2008(In thousands, except per share data)Interest and dividend income:Overnight investments
    
    $
    
    
    
    $
    58
    
    
    $
    9
    
    
    $
    255Mortgage-backed securities
    
    
    3,360
    
    
    
    3,455
    
    
    
    6,763
    
    
    
    6,687Investment securities
    
    
    536
    
    
    
    759
    
    
    
    987
    
    
    
    1,460Federal Home Loan Bank of Boston stock dividends
    
    
    
    
    
    
    156
    
    
    
    
    
    
    
    393Loans and leases
    
    
    14,896
    
    
    
    15,553
    
    
    
    29,593
    
    
    
    31,718Total interest and dividend income
    
    
    18,792
    
    
    
    19,981
    
    
    
    37,352
    
    
    
    40,513Interest expense:Deposits
    
    
    4,224
    
    
    
    5,331
    
    
    
    8,718
    
    
    
    12,023Overnight and short-term borrowings
    
    
    21
    
    
    
    213
    
    
    
    48
    
    
    
    644Wholesale repurchase agreements
    
    
    134
    
    
    
    133
    
    
    
    267
    
    
    
    268Federal Home Loan Bank of Boston borrowings
    
    
    2,650
    
    
    
    2,650
    
    
    
    5,275
    
    
    
    5,370Subordinated deferrable interest debentures
    
    
    190
    
    
    
    226
    
    
    
    389
    
    
    
    476Total interest expense
    
    
    7,219
    
    
    
    8,553
    
    
    
    14,697
    
    
    
    18,781Net interest income
    
    
    11,573
    
    
    
    11,428
    
    
    
    22,655
    
    
    
    21,732Provision for loan and lease losses
    
    
    2,600
    
    
    
    970
    
    
    
    4,210
    
    
    
    1,255Net interest income after provision for loan
and lease losses
    
    
    8,973
    
    
    
    10,458
    
    
    
    18,445
    
    
    
    20,477Noninterest income:Service charges on deposit accounts
    
    
    1,367
    
    
    
    1,448
    
    
    
    2,577
    
    
    
    2,883Income from bank-owned life insurance
    
    
    304
    
    
    
    262
    
    
    
    593
    
    
    
    517Loan related fees
    
    
    229
    
    
    
    144
    
    
    
    628
    
    
    
    307Commissions on nondeposit investment products
    
    
    111
    
    
    
    245
    
    
    
    267
    
    
    
    455Net gains on lease sales and commissions on loans originated for others
    
    
    19
    
    
    
    100
    
    
    
    48
    
    
    
    319Gain on sale of available for sale securities
    
    
    
    
    
    
    
    
    
    
    61
    
    
    
    242Other income
    
    
    184
    
    
    
    293
    
    
    
    397
    
    
    
    672Total noninterest income
    
    
    2,214
    
    
    
    2,492
    
    
    
    4,571
    
    
    
    5,395Noninterest expense:Salaries and employee benefits
    
    
    4,926
    
    
    
    5,000
    
    
    
    10,079
    
    
    
    10,139FDIC insurance
    
    
    1,176
    
    
    
    162
    
    
    
    1,563
    
    
    
    262Occupancy
    
    
    832
    
    
    
    864
    
    
    
    1,788
    
    
    
    1,729Data processing
    
    
    670
    
    
    
    708
    
    
    
    1,290
    
    
    
    1,427Professional services
    
    
    646
    
    
    
    854
    
    
    
    1,344
    
    
    
    1,489Marketing
    
    
    332
    
    
    
    369
    
    
    
    647
    
    
    
    733Equipment
    
    
    242
    
    
    
    266
    
    
    
    483
    
    
    
    574Loan servicing
    
    
    189
    
    
    
    151
    
    
    
    348
    
    
    
    318Loan workout and other real estate owned
    
    
    149
    
    
    
    80
    
    
    
    277
    
    
    
    236Other expenses
    
    
    983
    
    
    
    1,158
    
    
    
    1,949
    
    
    
    2,165Total noninterest expense
    
    
    10,145
    
    
    
    9,612
    
    
    
    19,768
    
    
    
    19,072Income before income taxes
    
    
    1,042
    
    
    
    3,338
    
    
    
    3,248
    
    
    
    6,800Income tax expense
    
    
    302
    
    
    
    1,097
    
    
    
    1,045
    
    
    
    2,233Net income
    
    
    740
    
    
    
    2,241
    
    
    
    2,203
    
    
    
    4,567Preferred stock dividends
    
    
    (375
    )
    
    
    
    
    
    
    (750
    )
    
    
    Accretion of preferred shares discount
    
    
    (62
    )
    
    
    
    
    
    
    (123
    )
    
    
    Net income applicable to common shares
    
    $
    303
    
    
    $
    2,241
    
    
    $
    1,330
    
    
    $
    4,567Per share data:Basic earnings per common share
    
    $
    0.07
    
    
    $
    0.49
    
    
    $
    0.29
    
    
    $
    1.00Diluted earnings per common share
    
    $
    0.07
    
    
    $
    0.48
    
    
    $
    0.29
    
    
    $
    0.98Cash dividends declared per common share
    
    $
    0.17
    
    
    $
    0.16
    
    
    $
    0.34
    
    
    $
    0.32Weighted average common shares outstanding  basic
    
    
    4,602
    
    
    
    4,563
    
    
    
    4,596
    
    
    
    4,560Weighted average common shares outstanding  diluted
    
    
    4,620
    
    
    
    4,634
    
    
    
    4,615
    
    
    
    4,636
 See accompanying notes to unaudited consolidated financial statements
  4




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##### Table of Contents



BANCORP RHODE ISLAND, INC.
 
 Consolidated Statements of Changes in Shareholders Equity (unaudited)
 AccumulatedOtherCompre-Additional
    
    
    
    
    
    
    
    
    
    
    hensivePreferred
    
    
    Common
    
    
    Paid-in
    
    
    Treasury
    
    
    Retained
    
    
    IncomeSix months ended June 30,
    
    Stock
    
    
    Stock
    
    
    Capital
    
    
    Stock
    
    
    Earnings
    
    
    (Loss)
    
    
    Total(In thousands, except per share data)2008Balance at December 31, 2007
    
    $
    
    
    
    $
    49
    
    
    $
    70,123
    
    
    $
    (10,189
    )
    
    $
    53,194
    
    
    $
    (69
    )
    
    $
    113,108Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,567
    
    
    
    
    
    
    
    4,567Other comprehensive income:Unrealized holding losses on
securities available for sale,
net of taxes of $1,401
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,604
    )
    
    
    (2,604
    )Reclassification adjustment,
net of taxes of $85
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (157
    )
    
    
    (157
    )Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,806Exercise of stock options
    
    
    
    
    
    
    
    
    
    
    476
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    476Macrolease acquisition
    
    
    
    
    
    
    
    
    
    
    656
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    656Treasury stock acquisitions
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,866
    )
    
    
    
    
    
    
    
    
    
    
    (1,866
    )Share-based compensation
    
    
    
    
    
    
    
    
    
    
    174
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    174Tax benefit from exercise of stock
options
    
    
    
    
    
    
    
    
    
    
    187
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    187Dividends on common stock ($0.16
per common share)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,447
    )
    
    
    
    
    
    
    (1,447
    )Balance at June 30, 2008
    
    $
    
    
    
    $
    49
    
    
    $
    71,616
    
    
    $
    (12,055
    )
    
    $
    56,314
    
    
    $
    (2,830
    )
    
    $
    113,0942009Balance at December 31, 2008
    
    $
    28,595
    
    
    $
    49
    
    
    $
    73,323
    
    
    $
    (12,055
    )
    
    $
    59,278
    
    
    $
    415
    
    
    $
    149,605Cumulative effect of a change in
accounting principle, net of taxes of
($77)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    137
    
    
    
    (137
    )
    
    
    Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,203
    
    
    
    
    
    
    
    2,203Other comprehensive income:Unrealized holding losses on
securities available for sale,
net of taxes of $303
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (564
    )
    
    
    (564
    )Reclassification adjustment for
net gains included in net
income, net of taxes of $21
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (40
    )
    
    
    (40
    )Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,599Exercise of stock options
    
    
    
    
    
    
    1
    
    
    
    413
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    414Macrolease acquisition
    
    
    
    
    
    
    
    
    
    
    78
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    78Treasury stock acquisitions
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (254
    )
    
    
    
    
    
    
    
    
    
    
    (254
    )Share-based compensation
    
    
    
    
    
    
    
    
    
    
    (19
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (19
    )Tax benefit from exercise of stock
options
    
    
    
    
    
    
    
    
    
    
    78
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    78Preferred stock discount amortization
    
    
    123
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (123
    )
    
    
    
    
    
    
    Dividends on preferred stock ($25.00
per preferred share)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (750
    )
    
    
    
    
    
    
    (750
    )Dividends on common stock ( $0.34
per common share)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,562
    )
    
    
    
    
    
    
    (1,562
    )Balance at June 30, 2009
    
    $
    28,718
    
    
    $
    50
    
    
    $
    73,873
    
    
    $
    (12,309
    )
    
    $
    59,183
    
    
    $
    (326
    )
    
    $
    149,189
 See accompanying notes to unaudited consolidated financial statements
  5




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##### Table of Contents



BANCORP RHODE ISLAND, INC.
 
 Consolidated Statements of Cash Flows (unaudited)
 Six Months EndedJune  30,2009
    
    
    2008(In thousands)Cash flows from operating activities:Net income
    
    $
    2,203
    
    
    $
    4,567Adjustments to reconcile net income to net cash (used in) provided by operating
activities:Depreciation, amortization and accretion, net
    
    
    (2,878
    )
    
    
    (1,275
    )Provision for loan and lease losses
    
    
    4,210
    
    
    
    1,255Income from bank-owned life insurance
    
    
    (593
    )
    
    
    (517
    )Share-based compensation expense
    
    
    (19
    )
    
    
    174Net gains on lease sales
    
    
    (24
    )
    
    
    (254
    )Gain on sale of available for sale securities
    
    
    (61
    )
    
    
    (242
    )Gain on sale of other real estate owned
    
    
    (32
    )
    
    
    Proceeds from sales of leases
    
    
    759
    
    
    
    8,825Leases originated for sale
    
    
    (579
    )
    
    
    (5,304
    )Decrease in accrued interest receivable
    
    
    169
    
    
    
    930(Increase) decrease in prepaid expenses and other assets
    
    
    (328
    )
    
    
    145Decrease in other liabilities
    
    
    (2,882
    )
    
    
    (2,325
    )Net cash (used in) provided by operating activities
    
    
    (55
    )
    
    
    5,979Cash flows from investing activities:Available for sale securities:Purchases
    
    
    (138,662
    )
    
    
    (91,033
    )Maturities and principal repayments
    
    
    86,252
    
    
    
    75,310Proceeds from sales
    
    
    1,880
    
    
    
    13,097Net increase in loans and leases
    
    
    (39,249
    )
    
    
    (24,131
    )Capital expenditures for premises and equipment
    
    
    (615
    )
    
    
    (269
    )Proceeds from sale of premises and equipment
    
    
    
    
    
    
    36Proceeds from sale of other real estate owned
    
    
    729
    
    
    
    Net cash used in investing activities
    
    
    (89,665
    )
    
    
    (26,990
    )Cash flows from financing activities:Net increase in deposits
    
    
    42,481
    
    
    
    25,734Net decrease in overnight and short-term borrowings
    
    
    (16,875
    )
    
    
    (16,301
    )Proceeds from long-term borrowings
    
    
    49,805
    
    
    
    30,000Repayment of long-term borrowings
    
    
    (16,701
    )
    
    
    (23,774
    )Exercise of stock options
    
    
    160
    
    
    
    226Treasury stock acquisitions
    
    
    
    
    
    
    (1,616
    )Tax benefit from exercise of stock options
    
    
    78
    
    
    
    187Dividends on preferred stock
    
    
    (608
    )
    
    
    Dividends on common stock
    
    
    (1,562
    )
    
    
    (1,447
    )Net cash provided by financing activities
    
    
    56,778
    
    
    
    13,009Net decrease in cash and cash equivalents
    
    
    (32,942
    )
    
    
    (8,002
    )Cash and cash equivalents at beginning of period
    
    
    55,457
    
    
    
    37,562Cash and cash equivalents at end of period
    
    $
    22,515
    
    
    $
    29,560Supplementary Disclosures:Cash paid for interest
    
    $
    15,180
    
    
    $
    20,678Cash paid for income taxes
    
    
    2,159
    
    
    
    2,350Non-cash investing and financing transactions:Change in accumulated other comprehensive income, net of taxes
    
    
    (604
    )
    
    
    (2,761
    )Cumulative effect of a change in accounting principle, net of taxes
    
    
    137
    
    
    
    Accrual of cumulative preferred dividends payable
    
    
    142
    
    
    
    Contingent share payments related to Macrolease acquisition
    
    
    78
    
    
    
    656Transfer of loans to other real estate owned
    
    
    756
    
    
    
    Transfer of loans to other assets (non-real estate foreclosed assets)
    
    
    122
    
    
    
    Treasury stock acquisitions from shares tendered in stock option exercises
    
    
    254
    
    
    
    250
 See accompanying notes to unaudited consolidated financial statements
  6




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##### Table of Contents



BANCORP RHODE ISLAND, INC.
 
 Notes to Consolidated Financial Statements (unaudited)
 (1) Basis of Presentation
       (2) Earnings Per Share
   7




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##### Table of Contents



(3) Recently Adopted Accounting Pronouncements
 Business Combinations (Revised 2007). Business Combinations, Accounting for Costs
Associated with Exit or Disposal Activities  Accounting for
Contingencies 
 Noncontrolling Interests in Consolidated
Financial Statements  an amendment of ARB No. 51
 Disclosures about Derivative Instruments and
Hedging Activities  an amendment of FASB Statement No. 133. Accounting
for Derivative Instruments and Hedging Activities, Note 6  Derivatives.
 Determining Whether
Instruments Granted In Share-Based Payment Transactions Are Participating Securities
 Accounting for Assets Acquired and
Liabilities Assumed in a Business Combination That Arise from Contingencies.
  8




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##### Table of Contents



Determining Fair Value When the Volume and
Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying
Transactions That Are Not Orderly. Note 7  Fair
Value of Financial Instruments.
 Recognition and Presentation of
Other-Than-Temporary Impairments Note 5  Available for Sale Securities
 Interim Disclosures about Fair
Value of Financial Instruments. Note 7  Fair
Value of Financial Instruments
 Subsequent Events. Note 9  Subsequent Events.
 (4) Recent Accounting Pronouncements
 Accounting for Transfers of Financial Assets, an
amendment of FASB Statement No. 140. Accounting for Transfers and Servicing of
Financial Assets and Extinguishments of Liabilities,
  9




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##### Table of Contents



Amendments to FASB Interpretation No. 46(R).
 The FASB Accounting Standards Codification and
the Hierarchy of Generally Accepted Accounting Principles  a replacement of FASB Statement No.
162.
 (5) Available for Sale Securities
   Amortized
    
    
    Unrealized
    
    
    FairCost (1)
    
    
    Gains
    
    
    Losses
    
    
    Value(In thousands)At June 30, 2009:U.S. Treasury obligations
    
    $
    10,000
    
    
    $
    
    
    
    $
    
    
    
    $
    10,000GSE obligations
    
    
    71,982
    
    
    
    230
    
    
    
    (216
    )
    
    
    71,996Trust preferred collateralized debt obligations
    
    
    2,935
    
    
    
    
    
    
    
    (2,269
    )
    
    
    666Collateralized mortgage obligations
    
    
    54,548
    
    
    
    633
    
    
    
    (3,683
    )
    
    
    51,498GSE mortgage-backed securities
    
    
    237,063
    
    
    
    5,514
    
    
    
    (711
    )
    
    
    241,866Total
    
    $
    376,528
    
    
    $
    6,377
    
    
    $
    (6,879
    )
    
    $
    376,026At December 31, 2008:U.S. Treasury obligations
    
    $
    9,990
    
    
    $
    
    
    
    $
    (2
    )
    
    $
    9,988GSE obligations
    
    
    47,131
    
    
    
    256
    
    
    
    
    
    
    
    47,387Corporate debt securities
    
    
    2,001
    
    
    
    
    
    
    
    (14
    )
    
    
    1,987Trust preferred collateralized debt obligations
    
    
    2,735
    
    
    
    
    
    
    
    (1,255
    )
    
    
    1,480Collateralized mortgage obligations
    
    
    62,909
    
    
    
    256
    
    
    
    (2,415
    )
    
    
    60,750GSE mortgage-backed securities
    
    
    201,001
    
    
    
    4,289
    
    
    
    (476
    )
    
    
    204,814Total
    
    $
    325,767
    
    
    $
    4,801
    
    
    $
    (4,162
    )
    
    $
    326,406
 (1)
    
    Amortized cost is net of write-downs as a result of other-than-temporary
impairment.  10




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##### Table of Contents



Less than One Year
    
    
    One Year or Longer
    
    
    TotalFair
    
    
    Unrealized
    
    
    Fair
    
    
    Unrealized
    
    
    Fair
    
    
    UnrealizedValue
    
    
    Losses
    
    
    Value
    
    
    Losses
    
    
    Value
    
    
    Losses(In thousands)At June 30, 2009:GSE obligations
    
    
    27,254
    
    
    
    (216
    )
    
    
    
    
    
    
    
    
    
    
    27,254
    
    
    
    (216
    )Trust preferred collateralized debt
obligations
    
    
    345
    
    
    
    (642
    )
    
    
    321
    
    
    
    (1,627
    )
    
    
    666
    
    
    
    (2,269
    )Collateralized mortgage obligations
    
    
    12,349
    
    
    
    (52
    )
    
    
    16,081
    
    
    
    (3,631
    )
    
    
    28,430
    
    
    
    (3,683
    )GSE mortgage-backed securities
    
    
    42,991
    
    
    
    (706
    )
    
    
    673
    
    
    
    (5
    )
    
    
    43,664
    
    
    
    (711
    )Total
    
    $
    82,939
    
    
    $
    (1,616
    )
    
    $
    17,075
    
    
    $
    (5,263
    )
    
    $
    100,014
    
    
    $
    (6,879
    )At December 31, 2008:U.S. Treasury obligations
    
    $
    9,988
    
    
    $
    (2
    )
    
    $
    
    
    
    $
    
    
    
    $
    9,988
    
    
    $
    (2
    )Corporate debt securities
    
    
    1,987
    
    
    
    (14
    )
    
    
    
    
    
    
    
    
    
    
    1,987
    
    
    
    (14
    )Trust preferred collateralized debt
obligations
    
    
    
    
    
    
    
    
    
    
    1,480
    
    
    
    (1,255
    )
    
    
    1,480
    
    
    
    (1,255
    )Collateralized mortgage obligations
    
    
    30,771
    
    
    
    (1,385
    )
    
    
    10,343
    
    
    
    (1,030
    )
    
    
    41,114
    
    
    
    (2,415
    )GSE mortgage-backed securities
    
    
    33,016
    
    
    
    (350
    )
    
    
    2,662
    
    
    
    (126
    )
    
    
    35,678
    
    
    
    (476
    )Total
    
    $
    75,762
    
    
    $
    (1,751
    )
    
    $
    14,485
    
    
    $
    (2,411
    )
    
    $
    90,247
    
    
    $
    (4,162
    )
  After One, But
    
    
    After Five, ButWithin One Year
    
    
    Within Five Years
    
    
    Within Ten Years
    
    
    After Ten YearsAmortized
    
    
    Fair
    
    
    Amortized
    
    
    Fair
    
    
    Amortized
    
    
    Fair
    
    
    Amortized
    
    
    FairCost
    
    
    Value
    
    
    Cost
    
    
    Value
    
    
    Cost
    
    
    Value
    
    
    Cost
    
    
    Value(In thousands)At June 30, 2009:U.S. Treasury obligations
    
    $
    10,000
    
    
    $
    10,000
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    GSE obligations
    
    
    
    
    
    
    
    
    
    
    71,982
    
    
    
    71,996
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Trust preferred collateralized debt obligations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,935
    
    
    
    666Collateralized mortgage obligations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    18,451
    
    
    
    18,589
    
    
    
    36,097
    
    
    
    32,909GSE mortgage-backed securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    23,620
    
    
    
    24,534
    
    
    
    213,443
    
    
    
    217,332Total
    
    $
    10,000
    
    
    $
    10,000
    
    
    $
    71,982
    
    
    $
    71,996
    
    
    $
    42,071
    
    
    $
    43,123
    
    
    $
    252,475
    
    
    $
    250,907At December 31, 2008:U.S. Treasury obligations
    
    $
    9,990
    
    
    $
    9,988
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    GSE obligations
    
    
    5,000
    
    
    
    5,013
    
    
    
    42,131
    
    
    
    42,374
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Corporate debt securities
    
    
    2,001
    
    
    
    1,987
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Trust preferred collateralized debt obligations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,735
    
    
    
    1,480Collateralized mortgage obligations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    20,867
    
    
    
    20,408
    
    
    
    42,042
    
    
    
    40,343GSE mortgage-backed securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    25,764
    
    
    
    26,604
    
    
    
    175,237
    
    
    
    178,209Total
    
    $
    16,991
    
    
    $
    16,988
    
    
    $
    42,131
    
    
    $
    42,374
    
    
    $
    46,631
    
    
    $
    47,012
    
    
    $
    220,014
    
    
    $
    220,032
    11




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(6) Derivatives
 Accounting for Derivative Instruments and Hedging Activities,
  12




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##### Table of Contents



Asset Derivatives
    
    
    Liability DerivativesAs of
    
    
    As of
    
    
    
    
    As of
    
    
    As ofBalance
    
    June 30,
    
    
    December
    
    
    Balance
    
    June 30,
    
    
    DecemberSheet
    
    2009
    
    
    31, 2008
    
    
    Sheet
    
    2009
    
    
    31, 2008(In thousands)
    
    Location
    
    Fair Value
    
    
    Location
    
    Fair ValueDerivatives notdesignated as hedging instruments under SFAS No. 133Interest rate products
    
    Other assets
    
    $
    358
    
    
    $
    482
    
    
    Other liabilities
    
    $
    301
    
    
    $
    431Total derivatives notdesignated as hedging instruments under SFAS No. 133
    
    
    
    $
    358
    
    
    $
    482
    
    
    
    
    $
    301
    
    
    $
    431
    Amount of Gain or (Loss) Recognized inDerivatives Not Designated as
    
    Location of Gain or (Loss)
    
    Income on Derivative(1)Hedging Instruments Under SFAS
    
    Recognized in Income on
    
    Three Months Ended June 30,No. 133
    
    Derivative
    
    2009
    
    
    2008(In thousands)Interest Rate Products
    
    Loan related fees
    
    $
    69
    
    
    $
    Total
    
    
    
    $
    69
    
    
    $
    
 (1)
    
    The amount of gain recognized in income represents net fee income and changes
related to the fair value of the interest rate products.  13




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##### Table of Contents



Amount of Gain or (Loss) Recognized inDerivatives Not Designated as
    
    Location of Gain or (Loss)
    
    Income on Derivative(1)Hedging Instruments Under SFAS
    
    Recognized in Income on
    
    Six Months Ended June 30,No. 133
    
    Derivative
    
    2009
    
    
    2008(In thousands)Interest Rate Products
    
    Loan related fees
    
    $
    322
    
    
    $
    Total
    
    
    
    $
    322
    
    
    $
    
 (1)
    
    The amount of gain recognized in income represents net fee income and changes
related to the fair value of the interest rate products.    (7) Fair Value of Financial Instruments
 Fair Value Measurements. Effective Date of FASB Statement No. 157.
   14




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15




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##### Table of Contents



Fair Value Measurements at June 30, 2009 UsingQuoted Prices in
    
    
    Significant
    
    
    SignificantActive Markets
    
    
    Other
    
    
    Otherfor Identical
    
    
    Observable
    
    
    UnobservableAssets
    
    
    Inputs
    
    
    Inputs(In thousands)
    
    Total
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)U.S. Treasury obligations
    
    $
    10,000
    
    
    $
    
    
    
    $
    10,000
    
    
    $
    GSE obligations
    
    
    71,996
    
    
    
    
    
    
    
    71,996
    
    
    
    Trust preferred CDOs
    
    
    666
    
    
    
    
    
    
    
    
    
    
    
    666Collateralized mortgage obligations
    
    
    51,498
    
    
    
    
    
    
    
    51,498
    
    
    
    GSE mortgage-backed securities
    
    
    241,866
    
    
    
    
    
    
    
    241,866
    
    
    
    Total available for sale securities
    
    
    376,026
    
    
    
    
    
    
    
    375,360
    
    
    
    666Interest rate swap assets
    
    
    358
    
    
    
    
    
    
    
    358
    
    
    
    Interest rate swap liabilities
    
    
    301
    
    
    
    
    
    
    
    301
    
    
    
    
 Fair Value Measurements at December 31, 2008 UsingQuoted Prices in
    
    
    Significant
    
    
    SignificantActive Markets
    
    
    Other
    
    
    Otherfor Identical
    
    
    Observable
    
    
    UnobservableAssets
    
    
    Inputs
    
    
    Inputs(In thousands)
    
    Total
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)U.S. Treasury obligations
    
    $
    9,988
    
    
    $
    
    
    
    $
    9,988
    
    
    $
    GSE obligations
    
    
    47,387
    
    
    
    
    
    
    
    47,387
    
    
    
    Corporate debt securities
    
    
    1,987
    
    
    
    
    
    
    
    1,987
    
    
    
    Trust preferred CDOs
    
    
    1,480
    
    
    
    
    
    
    
    
    
    
    
    1,480Collateralized mortgage obligations
    
    
    60,750
    
    
    
    
    
    
    
    60,750
    
    
    
    GSE mortgage-backed securities
    
    
    204,814
    
    
    
    
    
    
    
    204,814
    
    
    
    Total available for sale securities
    
    
    326,406
    
    
    
    
    
    
    
    324,926
    
    
    
    1,480Interest rate swap assets
    
    
    482
    
    
    
    
    
    
    
    482
    
    
    
    Interest rate swap liabilities
    
    
    431
    
    
    
    
    
    
    
    431
    
    
    
    
   16




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##### Table of Contents



Note 6 
Derivatives.
  17




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##### Table of Contents



Fair Value Measurements Using SignificantUnobservable Inputs2009
    
    
    2008(In thousands)
    
    Available for sale securitiesBalance, January 1
    
    $
    1,480
    
    
    $
    974Increase in unrealized holding losses
    
    
    (814
    )
    
    
    (85
    )Transfers to Level 3
    
    
    
    
    
    
    1,642Balance, June 30
    
    $
    666
    
    
    $
    2,531
   Fair Value Measurements at June 30, 2009 UsingQuoted Prices in
    
    
    Significant
    
    
    SignificantActive Markets
    
    
    Other
    
    
    Otherfor Identical
    
    
    Observable
    
    
    UnobservableAssets
    
    
    Inputs
    
    
    Inputs(In thousands)
    
    Total
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Impaired loans
    
    $
    5,946
    
    
    $
    
    
    
    $
    5,946
    
    
    $
    Other real estate owned
    
    
    756
    
    
    
    
    
    
    
    756
    
    
    
    Non-real estate foreclosed assets
    
    
    122
    
    
    
    
    
    
    
    122
    
    
    
    
 Fair Value Measurements at June 30, 2008 UsingQuoted Prices in
    
    
    Significant
    
    
    SignificantActive Markets
    
    
    Other
    
    
    Otherfor Identical
    
    
    Observable
    
    
    UnobservableAssets
    
    
    Inputs
    
    
    Inputs(In thousands)
    
    Total
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Impaired loans
    
    $
    2,655
    
    
    $
    
    
    
    $
    2,655
    
    
    $
    Other real estate owned
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Non-real estate foreclosed assets
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
   18




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Disclosures about Fair Value of Financial Instruments,
 Loans and leases receivable
 Stock in the Federal Home Loan Bank of Boston
 Deposits
 Wholesale repurchase agreements
 Federal Home Loan Bank of Boston borrowings
 Subordinated deferrable interest debentures
  19




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Financial instruments with off-balance sheet risk
  June 30, 2009
    
    
    December 31, 2008Book
    
    
    Estimated
    
    
    Book
    
    
    EstimatedValue
    
    
    Fair Value
    
    
    Value
    
    
    Fair Value(In thousands)Assets:Cash and due from banks
    
    $
    21,740
    
    
    $
    21,740
    
    
    $
    54,344
    
    
    $
    54,344Overnight investments
    
    
    775
    
    
    
    775
    
    
    
    1,113
    
    
    
    1,113Available for sale securities
    
    
    376,026
    
    
    
    376,026
    
    
    
    326,406
    
    
    
    326,406Stock in the FHLB
    
    
    15,671
    
    
    
    15,671
    
    
    
    15,671
    
    
    
    15,671Loans and leases receivable, net of
allowance for loan and lease losses:Commercial loans and leases
    
    
    698,219
    
    
    
    708,278
    
    
    
    646,814
    
    
    
    662,072Residential mortgage loans
    
    
    189,471
    
    
    
    192,041
    
    
    
    211,325
    
    
    
    208,669Consumer and other loans
    
    
    213,060
    
    
    
    212,612
    
    
    
    204,939
    
    
    
    199,252Interest rate swaps
    
    
    358
    
    
    
    358
    
    
    
    482
    
    
    
    482Accrued interest receivable
    
    
    5,071
    
    
    
    5,071
    
    
    
    5,240
    
    
    
    5,240Liabilities:Deposits:Demand deposit accounts
    
    $
    205,092
    
    
    $
    205,092
    
    
    $
    176,495
    
    
    $
    176,495NOW accounts
    
    
    65,847
    
    
    
    65,847
    
    
    
    56,703
    
    
    
    56,703Money market accounts
    
    
    29,179
    
    
    
    29,179
    
    
    
    4,445
    
    
    
    4,445Savings accounts
    
    
    381,716
    
    
    
    381,716
    
    
    
    381,106
    
    
    
    381,106Certificate of deposit accounts
    
    
    402,839
    
    
    
    407,073
    
    
    
    423,443
    
    
    
    427,571Overnight and short-term borrowings
    
    
    40,801
    
    
    
    40,801
    
    
    
    57,676
    
    
    
    57,676Wholesale repurchase agreements
    
    
    10,000
    
    
    
    10,504
    
    
    
    10,000
    
    
    
    11,075FHLB borrowings
    
    
    272,040
    
    
    
    296,120
    
    
    
    238,936
    
    
    
    266,723Subordinated deferrable interest
debentures
    
    
    13,403
    
    
    
    14,565
    
    
    
    13,403
    
    
    
    15,262Interest rate swaps
    
    
    301
    
    
    
    301
    
    
    
    431
    
    
    
    431Accrued interest payable
    
    
    2,121
    
    
    
    2,121
    
    
    
    2,600
    
    
    
    2,600
 (8)
    
    Contingent Liabilities   20




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(9) Subsequent Events
     21




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##### Table of Contents



ITEM 2.
    
    Managements Discussion and Analysis
 General
 http://www.bankri.com SM
 Critical Accounting Policies
  Overview
  Rate/Volume Analysis Average Balances, Yields and Costs
 Interest Rate
Risk
  22




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Financial Condition  Asset Quality
      23




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##### Table of Contents



Financial Condition  Executive Summary
  June 30,
    
    
    March 31,
    
    
    December 31,
    
    
    September 30,
    
    
    June 30,(In thousands)
    
    2009
    
    
    2009
    
    
    2008
    
    
    2008
    
    
    2008Total assets
    
    $
    1,584,482
    
    
    $
    1,548,863
    
    
    $
    1,528,974
    
    
    $
    1,489,980
    
    
    $
    1,490,054Loans and leases receivable
    
    
    1,117,655
    
    
    
    1,105,298
    
    
    
    1,077,742
    
    
    
    1,060,739
    
    
    
    1,060,304Available for sale securities
    
    
    376,026
    
    
    
    356,681
    
    
    
    326,406
    
    
    
    333,431
    
    
    
    333,812Goodwill
    
    
    12,051
    
    
    
    12,051
    
    
    
    12,019
    
    
    
    12,019
    
    
    
    12,019Core deposits (1)
    
    
    681,834
    
    
    
    636,240
    
    
    
    618,749
    
    
    
    615,085
    
    
    
    662,888Certificates of deposit
    
    
    402,839
    
    
    
    419,621
    
    
    
    423,443
    
    
    
    407,069
    
    
    
    377,626Borrowings
    
    
    336,244
    
    
    
    320,517
    
    
    
    320,015
    
    
    
    338,862
    
    
    
    321,628Common shareholders equity
    
    
    120,471
    
    
    
    122,306
    
    
    
    121,010
    
    
    
    114,226
    
    
    
    113,094Book value per common share
    
    
    26.18
    
    
    
    26.57
    
    
    
    26.45
    
    
    
    24.97
    
    
    
    24.75Tangible book value per common share
    
    
    23.56
    
    
    
    23.95
    
    
    
    23.82
    
    
    
    22.34
    
    
    
    22.12Tangible common equity ratio (2) (3)
    
    
    6.90
    %
    
    
    7.17
    %
    
    
    7.18
    %
    
    
    6.92
    %
    
    
    6.84
    %Core deposits to total deposits(1)
    
    
    62.9
    %
    
    
    60.3
    %
    
    
    59.4
    %
    
    
    60.2
    %
    
    
    63.7
    %
 (1)
    
    Core deposits consist of demand deposit, NOW, money market and savings accounts.(2)
    
    Calculated by dividing Common Stockholders Equity less Goodwill by Total Assets less Goodwill.(3)
    
    Non-GAAP performance measure.    24




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##### Table of Contents



Financial Condition  Detailed Analysis
 Investments
        25




---



##### Table of Contents



Loans and Leases
  Commercial loans and leases 
        Residential mortgage loans 
  26




---



##### Table of Contents



Consumer loans 
  June 30,
    
    
    December 31,2009
    
    
    2008(In thousands)Commercial loans and leases:Commercial real estate  owner occupied
    
    $
    163,461
    
    
    $
    175,472Commercial and industrial
    
    
    188,570
    
    
    
    164,569Commercial real estate  nonowner occupied
    
    
    159,576
    
    
    
    133,782Small business
    
    
    53,660
    
    
    
    50,464Multi-family
    
    
    58,596
    
    
    
    53,159Construction
    
    
    21,573
    
    
    
    22,300Leases and other (a)
    
    
    72,587
    
    
    
    63,799Subtotal
    
    
    718,023
    
    
    
    663,545Unearned lease income
    
    
    (8,702
    )
    
    
    (6,980
    )Net deferred loan origination costs
    
    
    2,318
    
    
    
    1,857Total commercial loans and leases
    
    
    711,639
    
    
    
    658,422Residential mortgage loans:One- to four-family adjustable rate
    
    
    117,911
    
    
    
    126,689One- to four-family fixed rate
    
    
    72,836
    
    
    
    85,057Subtotal
    
    
    190,747
    
    
    
    211,746Premium on loans acquired
    
    
    551
    
    
    
    953Net deferred loan origination fees
    
    
    (27
    )
    
    
    (34
    )Total residential mortgage loans
    
    
    191,271
    
    
    
    212,665Consumer loans:Home equity  term loans
    
    
    129,422
    
    
    
    127,142Home equity  lines of credit
    
    
    82,579
    
    
    
    76,038Unsecured and other
    
    
    1,594
    
    
    
    2,216Subtotal
    
    
    213,595
    
    
    
    205,396Net deferred loan origination costs
    
    
    1,150
    
    
    
    1,259Total consumer loans
    
    
    214,745
    
    
    
    206,655Total loans and leases receivable
    
    $
    1,117,655
    
    
    $
    1,077,742
 (a)
    
    Included within commercial loans and leases were leases held for sale of $156,000 at December
31, 2008. There were no leases held for sale at June 30, 2009.  27




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##### Table of Contents



Deposits
  The following table sets forth certain information regarding deposits:
 June 30, 2009
    
    
    December 31, 2008Percent
    
    
    Weighted
    
    
    
    
    
    
    Percent
    
    
    Weightedof
    
    
    Average
    
    
    
    
    
    
    of
    
    
    AverageAmount
    
    
    Total
    
    
    Rate
    
    
    Amount
    
    
    Total
    
    
    Rate(In thousands)NOW accounts
    
    $
    65,847
    
    
    
    6.1
    %
    
    
    0.09
    %
    
    $
    56,703
    
    
    
    5.5
    %
    
    
    0.10
    %Money market accounts
    
    
    29,179
    
    
    
    2.7
    %
    
    
    1.28
    %
    
    
    4,445
    
    
    
    0.4
    %
    
    
    0.39
    %Savings accounts
    
    
    381,716
    
    
    
    35.2
    %
    
    
    0.82
    %
    
    
    381,106
    
    
    
    36.6
    %
    
    
    1.46
    %Certificate of deposit accounts
    
    
    402,839
    
    
    
    37.1
    %
    
    
    2.80
    %
    
    
    423,443
    
    
    
    40.6
    %
    
    
    3.29
    %Total interest bearing deposits
    
    
    879,581
    
    
    
    81.1
    %
    
    
    1.69
    %
    
    
    865,697
    
    
    
    83.1
    %
    
    
    2.26
    %Noninterest bearing accounts
    
    
    205,092
    
    
    
    18.9
    %
    
    
    0.00
    %
    
    
    176,495
    
    
    
    16.9
    %
    
    
    0.00
    %Total deposits
    
    $
    1,084,673
    
    
    
    100.0
    %
    
    
    1.37
    %
    
    $
    1,042,192
    
    
    
    100.0
    %
    
    
    1.89
    %
  Borrowings
   Asset Quality
   28




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##### Table of Contents



Nonperforming assets 
   Delinquencies 
  June 30,
    
    
    December 31,2009
    
    
    2008(In thousands)Loans and leases accounted for on a nonaccrual basis
    
    $
    17,722
    
    
    $
    14,045Loans and leases past due 90 days or more, but still accruing
    
    
    
    
    
    
    324Restructured loans and leases on a nonaccrual basis
    
    
    31
    
    
    
    Total nonperforming loans and leases
    
    
    17,753
    
    
    
    14,369Other real estate owned
    
    
    921
    
    
    
    863Non-real estate foreclosed assets
    
    
    122
    
    
    
    Total nonperforming assets
    
    $
    18,796
    
    
    $
    15,232Delinquent loans 60-89 days past due
    
    $
    2,141
    
    
    $
    3,782Restructured loans and leases not included in nonperforming assets
    
    $
    447
    
    
    $
    32Nonperforming loans and leases as a percent of total loans and leases
    
    
    1.59
    %
    
    
    1.33
    %Nonperforming assets as a percent of total assets
    
    
    1.19
    %
    
    
    1.00
    %Delinquent loans and leases 60-89 days past due as a percent of
total loans and leases
    
    
    0.21
    %
    
    
    0.35
    %
 Adversely classified assets
  29




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##### Table of Contents



Allowance for Loan and Lease Losses
   Six Months Ended
    
    
    Year EndedJune 30, 2009
    
    
    December 31, 2008(In thousands)Balance at beginning of period
    
    $
    14,664
    
    
    $
    12,619Loans and leases charged-off:Commercial real estate loans
    
    
    (1
    )
    
    
    (174
    )Commercial and industrial loans
    
    
    (356
    )
    
    
    (570
    )Small business loans
    
    
    (694
    )
    
    
    (311
    )Leases
    
    
    (4
    )
    
    
    (131
    )Residential mortgage loans
    
    
    (930
    )
    
    
    (1,235
    )Consumer and other loans
    
    
    (26
    )
    
    
    (168
    )Total loans charged-off
    
    
    (2,011
    )
    
    
    (2,589
    )Recoveries of loans and leases previously charged-off:Commercial and industrial loans
    
    
    9
    
    
    
    35Small business loans
    
    
    8
    
    
    
    28Leases
    
    
    4
    
    
    
    16Residential mortgage loans
    
    
    2
    
    
    
    4Consumer and other loans
    
    
    19
    
    
    
    31Total recoveries of loans previously charged-off
    
    
    42
    
    
    
    114Net charge-offs
    
    
    (1,969
    )
    
    
    (2,475
    )Provision for loan and lease losses charged against income
    
    
    4,210
    
    
    
    4,520Balance at end of period
    
    $
    16,905
    
    
    $
    14,664
  30




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##### Table of Contents



June 30,
    
    
    December 31,2009
    
    
    2008(In thousands)Loan categoryCommercial loans and leases
    
    $
    12,429
    
    
    $
    10,708Residential mortgage loans
    
    
    1,667
    
    
    
    1,239Consumer and other loans
    
    
    1,560
    
    
    
    1,609Unallocated
    
    
    1,249
    
    
    
    1,108Total
    
    $
    16,905
    
    
    $
    14,664
    31




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##### Table of Contents



Results of Operations  Executive Overview
  For the three-month periods endedJune 30,
    
    
    March 31,
    
    
    December 31,
    
    
    September 30,
    
    
    June 30,(In thousands, except per share data)
    
    2009
    
    
    2009
    
    
    2008
    
    
    2008
    
    
    2008Income statement data:Net interest income
    
    $
    11,573
    
    
    $
    11,082
    
    
    $
    11,715
    
    
    $
    11,921
    
    
    $
    11,428Noninterest income
    
    
    2,214
    
    
    
    2,357
    
    
    
    2,881
    
    
    
    2,333
    
    
    
    2,492Noninterest expense
    
    
    10,145
    
    
    
    9,623
    
    
    
    9,510
    
    
    
    9,304
    
    
    
    9,612Net income
    
    
    740
    
    
    
    1,463
    
    
    
    2,253
    
    
    
    2,324
    
    
    
    2,241Net income applicable to common shares
    
    
    303
    
    
    
    1,027
    
    
    
    2,195
    
    
    
    2,324
    
    
    
    2,241Per share data:Diluted earnings per share
    
    $
    0.07
    
    
    $
    0.22
    
    
    $
    0.48
    
    
    $
    0.50
    
    
    $
    0.48Dividends per common share
    
    $
    0.17
    
    
    $
    0.17
    
    
    $
    0.17
    
    
    $
    0.17
    
    
    $
    0.16Operating ratios:Net interest margin (1) (5)
    
    
    3.10
    %
    
    
    3.08
    %
    
    
    3.29
    %
    
    
    3.34
    %
    
    
    3.24
    %Return on assets (2) (5)
    
    
    0.19
    %
    
    
    0.39
    %
    
    
    0.59
    %
    
    
    0.62
    %
    
    
    0.61
    %Return on equity (3) (5)
    
    
    2.44
    %
    
    
    4.88
    %
    
    
    5.09
    %
    
    
    8.20
    %
    
    
    7.90
    %Efficiency ratio (4) (5)
    
    
    73.58
    %
    
    
    71.60
    %
    
    
    65.15
    %
    
    
    65.27
    %
    
    
    69.05
    %
 (1)
    
    Calculated by dividing annualized Net Interest Income by Average
Interest-Earning Assets.(2)
    
    Calculated by dividing annualized Net Income by Average Total Assets.(3)
    
    Calculated by dividing annualized Net Income by Average Common
Shareholders Equity.(4)
    
    Calculated by dividing Noninterest Expense by Net Interest Income plus
Noninterest Income.(5)
    
    Non-GAAP performance measure.      32




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##### Table of Contents



Results of Operations  Comparison of the Three Months Ended June 30, 2009 and 2008
 Net Interest Income
   33




---



##### Table of Contents



Average
Balances, Yields and Costs
 For the three months ended June 30,2009
    
    
    2008Interest
    
    
    
    
    
    
    
    
    
    
    InterestAverage
    
    
    Earned/
    
    
    Average
    
    
    Average
    
    
    Earned/
    
    
    Average(In thousands)
    
    Balance
    
    
    Paid
    
    
    Yield
    
    
    Balance
    
    
    Paid
    
    
    YieldAssetsEarning assets:Overnight investments
    
    $
    3,149
    
    
    $
    
    
    
    
    0.08
    %
    
    $
    9,142
    
    
    $
    58
    
    
    
    2.55
    %Available for sale securities
    
    
    370,685
    
    
    
    3,896
    
    
    
    4.20
    %
    
    
    345,496
    
    
    
    4,214
    
    
    
    4.88
    %Stock in the FHLB
    
    
    15,671
    
    
    
    
    
    
    
    0.00
    %
    
    
    15,671
    
    
    
    156
    
    
    
    4.00
    %Loans and leases receivable:Commercial loans and leases
    
    
    694,723
    
    
    
    10,041
    
    
    
    5.79
    %
    
    
    606,019
    
    
    
    9,742
    
    
    
    6.46
    %Residential mortgage loans
    
    
    198,144
    
    
    
    2,460
    
    
    
    4.97
    %
    
    
    229,245
    
    
    
    3,037
    
    
    
    5.30
    %Consumer and other loans
    
    
    214,928
    
    
    
    2,395
    
    
    
    4.47
    %
    
    
    208,386
    
    
    
    2,774
    
    
    
    5.35
    %Total earning assets
    
    
    1,497,300
    
    
    
    18,792
    
    
    
    5.03
    %
    
    
    1,413,959
    
    
    
    19,981
    
    
    
    5.67
    %Cash and due from banks
    
    
    12,335
    
    
    
    
    
    
    
    
    
    
    
    19,600Allowance for loan and lease losses
    
    
    (15,788
    )
    
    
    
    
    
    
    
    
    
    
    (12,781
    )Premises and equipment
    
    
    12,425
    
    
    
    
    
    
    
    
    
    
    
    13,294Goodwill, net
    
    
    12,051
    
    
    
    
    
    
    
    
    
    
    
    12,019Accrued interest receivable
    
    
    4,213
    
    
    
    
    
    
    
    
    
    
    
    4,744Bank-owned life insurance
    
    
    29,158
    
    
    
    
    
    
    
    
    
    
    
    24,531Prepaid expenses and other assets
    
    
    10,081
    
    
    
    
    
    
    
    
    
    
    
    7,292Total assets
    
    $
    1,561,775
    
    
    
    
    
    
    
    
    
    
    $
    1,482,658Liabilities and Shareholders EquityInterest-bearing liabilities:Deposits:NOW accounts
    
    $
    67,072
    
    
    $
    14
    
    
    
    0.08
    %
    
    $
    61,563
    
    
    $
    37
    
    
    
    0.24
    %Money market accounts
    
    
    16,228
    
    
    
    51
    
    
    
    1.26
    %
    
    
    5,414
    
    
    
    19
    
    
    
    1.42
    %Savings accounts
    
    
    385,887
    
    
    
    930
    
    
    
    0.97
    %
    
    
    406,957
    
    
    
    1,691
    
    
    
    1.67
    %Certificate of deposit accounts
    
    
    424,699
    
    
    
    3,229
    
    
    
    3.05
    %
    
    
    381,111
    
    
    
    3,584
    
    
    
    3.78
    %Overnight and short-term borrowings
    
    
    45,065
    
    
    
    22
    
    
    
    0.19
    %
    
    
    52,168
    
    
    
    212
    
    
    
    1.64
    %Wholesale repurchase agreements
    
    
    10,000
    
    
    
    134
    
    
    
    5.39
    %
    
    
    10,000
    
    
    
    134
    
    
    
    5.32
    %FHLB borrowings
    
    
    249,852
    
    
    
    2,649
    
    
    
    4.20
    %
    
    
    243,567
    
    
    
    2,650
    
    
    
    4.38
    %Subordinated deferrable interest debentures
    
    
    13,403
    
    
    
    190
    
    
    
    5.67
    %
    
    
    13,403
    
    
    
    226
    
    
    
    6.77
    %Total interest-bearing liabilities
    
    
    1,212,206
    
    
    
    7,219
    
    
    
    2.39
    %
    
    
    1,174,183
    
    
    
    8,553
    
    
    
    2.93
    %Noninterest-bearing deposits
    
    
    185,196
    
    
    
    
    
    
    
    
    
    
    
    180,109Other liabilities
    
    
    13,846
    
    
    
    
    
    
    
    
    
    
    
    14,278Total liabilities
    
    
    1,411,248
    
    
    
    
    
    
    
    
    
    
    
    1,368,570Shareholders equity:
    
    
    150,527
    
    
    
    
    
    
    
    
    
    
    
    114,088Total liabilities and shareholders equity
    
    $
    1,561,775
    
    
    
    
    
    
    
    
    
    
    $
    1,482,658Net interest income
    
    
    
    
    
    $
    11,573
    
    
    
    
    
    
    
    
    
    
    $
    11,428Net interest rate spread
    
    
    
    
    
    
    
    
    
    
    2.64
    %
    
    
    
    
    
    
    
    
    
    
    2.74
    %Net interest rate margin
    
    
    
    
    
    
    
    
    
    
    3.10
    %
    
    
    
    
    
    
    
    
    
    
    3.24
    %
  34




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##### Table of Contents



Rate/Volume Analysis 
 Three Months Ended June 30,2009 vs. 2008Increase/(Decrease) Due to(In thousands)
    
    Rate
    
    
    Volume
    
    
    TotalInterest income:Overnight investments
    
    $
    (34
    )
    
    $
    (24
    )
    
    $
    (58
    )Available for sale securities
    
    
    (480
    )
    
    
    162
    
    
    
    (318
    )Stock in the FHLB
    
    
    (156
    )
    
    
    
    
    
    
    (156
    )Commercial loans and leases
    
    
    (1,321
    )
    
    
    1,620
    
    
    
    299Residential mortgage loans
    
    
    (189
    )
    
    
    (388
    )
    
    
    (577
    )Consumer and other loans
    
    
    (376
    )
    
    
    (3
    )
    
    
    (379
    )Total interest income
    
    
    (2,556
    )
    
    
    1,367
    
    
    
    (1,189
    )Interest expense:NOW accounts
    
    
    (26
    )
    
    
    3
    
    
    
    (23
    )Money market accounts
    
    
    (2
    )
    
    
    34
    
    
    
    32Savings accounts
    
    
    (677
    )
    
    
    (84
    )
    
    
    (761
    )Certificate of deposit accounts
    
    
    (706
    )
    
    
    351
    
    
    
    (355
    )Overnight and short-term borrowings
    
    
    (165
    )
    
    
    (25
    )
    
    
    (190
    )FHLB borrowings
    
    
    (82
    )
    
    
    81
    
    
    
    (1
    )Subordinated deferrable interest debentures
    
    
    (36
    )
    
    
    
    
    
    
    (36
    )Total interest expense
    
    
    (1,694
    )
    
    
    360
    
    
    
    (1,334
    )Net interest income
    
    $
    (862
    )
    
    $
    1,007
    
    
    $
    145
 Interest Income  Investments 
  Interest Income  Loans and Leases
   35




---



##### Table of Contents



Interest Expense  Deposits and Borrowings 
     Provision for Loan and Lease Losses
  Allowance for Loan and Lease Losses.
 Noninterest Income
  Noninterest Expense
   36




---



##### Table of Contents



Income Tax Expense
   Results of Operations  Comparison of the Six Months Ended June 30, 2009 and 2008
 General
  Net Interest Income
   37




---



##### Table of Contents



Average Balances, Yields
and Costs
 Six Months Ended June 30,2009
    
    
    2008Interest
    
    
    
    
    
    
    
    
    
    
    InterestAverage
    
    
    Earned/
    
    
    Average
    
    
    Average
    
    
    Earned/
    
    
    Average(In thousands)
    
    Balance
    
    
    Paid
    
    
    Yield
    
    
    Balance
    
    
    Paid
    
    
    YieldAssetsEarning assets:Overnight investments
    
    $
    1,984
    
    
    $
    9
    
    
    
    0.96
    %
    
    $
    15,954
    
    
    $
    255
    
    
    
    3.21
    %Available for sale securities
    
    
    356,714
    
    
    
    7,750
    
    
    
    4.38
    %
    
    
    331,699
    
    
    
    8,147
    
    
    
    4.93
    %Stock in the FHLB
    
    
    15,671
    
    
    
    
    
    
    
    0.00
    %
    
    
    15,671
    
    
    
    393
    
    
    
    5.04
    %Loans receivable:Commercial loans and leases
    
    
    683,843
    
    
    
    19,747
    
    
    
    5.81
    %
    
    
    590,754
    
    
    
    19,548
    
    
    
    6.65
    %Residential mortgage loans
    
    
    202,949
    
    
    
    5,120
    
    
    
    5.05
    %
    
    
    236,463
    
    
    
    6,333
    
    
    
    5.36
    %Consumer and other loans
    
    
    211,361
    
    
    
    4,726
    
    
    
    4.51
    %
    
    
    211,240
    
    
    
    5,837
    
    
    
    5.56
    %Total earning assets
    
    
    1,472,522
    
    
    
    37,352
    
    
    
    5.10
    %
    
    
    1,401,781
    
    
    
    40,513
    
    
    
    5.80
    %Cash and due from banks
    
    
    20,288
    
    
    
    
    
    
    
    
    
    
    
    23,194Allowance for loan and lease losses
    
    
    (15,224
    )
    
    
    
    
    
    
    
    
    
    
    (12,734
    )Premises and equipment
    
    
    12,490
    
    
    
    
    
    
    
    
    
    
    
    13,440Goodwill, net
    
    
    12,058
    
    
    
    
    
    
    
    
    
    
    
    11,944Accrued interest receivable
    
    
    4,251
    
    
    
    
    
    
    
    
    
    
    
    4,991Bank-owned life insurance
    
    
    29,011
    
    
    
    
    
    
    
    
    
    
    
    24,405Prepaid expenses and other assets
    
    
    9,905
    
    
    
    
    
    
    
    
    
    
    
    7,180Total assets
    
    $
    1,545,301
    
    
    
    
    
    
    
    
    
    
    $
    1,474,201Liabilities and Shareholders EquityInterest-bearing liabilities:Deposits:NOW accounts
    
    $
    64,176
    
    
    
    32
    
    
    
    0.10
    %
    
    $
    60,744
    
    
    
    105
    
    
    
    0.35
    %Money market accounts
    
    
    10,450
    
    
    
    52
    
    
    
    1.01
    %
    
    
    5,750
    
    
    
    48
    
    
    
    1.68
    %Savings accounts
    
    
    386,046
    
    
    
    2,013
    
    
    
    1.05
    %
    
    
    400,108
    
    
    
    4,178
    
    
    
    2.10
    %Certificate of deposit accounts
    
    
    421,680
    
    
    
    6,621
    
    
    
    3.17
    %
    
    
    377,438
    
    
    
    7,692
    
    
    
    4.10
    %Overnight and short-term borrowings
    
    
    48,635
    
    
    
    48
    
    
    
    0.20
    %
    
    
    57,150
    
    
    
    644
    
    
    
    2.27
    %Wholesale repurchase agreements
    
    
    10,000
    
    
    
    267
    
    
    
    5.39
    %
    
    
    10,000
    
    
    
    269
    
    
    
    5.32
    %FHLB borrowings
    
    
    248,769
    
    
    
    5,275
    
    
    
    4.22
    %
    
    
    244,558
    
    
    
    5,370
    
    
    
    4.42
    %Subordinated deferrable interest debentures
    
    
    13,403
    
    
    
    389
    
    
    
    5.83
    %
    
    
    13,403
    
    
    
    476
    
    
    
    7.12
    %Total interest-bearing liabilities
    
    
    1,203,159
    
    
    
    14,697
    
    
    
    2.46
    %
    
    
    1,169,151
    
    
    
    18,782
    
    
    
    3.23
    %Noninterest-bearing deposits
    
    
    178,360
    
    
    
    
    
    
    
    
    
    
    
    175,375Other liabilities
    
    
    13,434
    
    
    
    
    
    
    
    
    
    
    
    15,911Total liabilities
    
    
    1,394,953
    
    
    
    
    
    
    
    
    
    
    
    1,360,437Shareholders Equity:
    
    
    150,348
    
    
    
    
    
    
    
    
    
    
    
    113,764Total liabilities and shareholders equity
    
    $
    1,545,301
    
    
    
    
    
    
    
    
    
    
    $
    1,474,201Net interest income
    
    
    
    
    
    $
    22,655
    
    
    
    
    
    
    
    
    
    
    $
    21,731Net interest rate spread
    
    
    
    
    
    
    
    
    
    
    2.64
    %
    
    
    
    
    
    
    
    
    
    
    2.57
    %Net interest rate margin
    
    
    
    
    
    
    
    
    
    
    3.09
    %
    
    
    
    
    
    
    
    
    
    
    3.11
    %
  38




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##### Table of Contents



Rate/Volume Analysis 
 Six Months Ended June 30,2009 vs. 2008Increase/(decrease) due to(In thousands)
    
    Rate
    
    
    Volume
    
    
    TotalInterest income:Overnight investments
    
    $
    (109
    )
    
    $
    (137
    )
    
    $
    (246
    )Available for sale securities
    
    
    (744
    )
    
    
    347
    
    
    
    (397
    )Stock in the FHLB
    
    
    (393
    )
    
    
    
    
    
    
    (393
    )Commercial loans and leases
    
    
    (3,153
    )
    
    
    3,352
    
    
    
    199Residential mortgage loans
    
    
    (361
    )
    
    
    (852
    )
    
    
    (1,213
    )Consumer and other loans
    
    
    (946
    )
    
    
    (165
    )
    
    
    (1,111
    )Total interest income
    
    
    (5,706
    )
    
    
    2,545
    
    
    
    (3,161
    )Interest expense:NOW accounts
    
    
    (79
    )
    
    
    6
    
    
    
    (73
    )Money market accounts
    
    
    (24
    )
    
    
    28
    
    
    
    4Savings accounts
    
    
    (2,021
    )
    
    
    (144
    )
    
    
    (2,165
    )Certificate of deposit accounts
    
    
    (1,870
    )
    
    
    799
    
    
    
    (1,071
    )Overnight and short-term borrowings
    
    
    (512
    )
    
    
    (84
    )
    
    
    (596
    )Wholesale repurchase agreements
    
    
    (2
    )
    
    
    
    
    
    
    (2
    )FHLB borrowings
    
    
    (199
    )
    
    
    104
    
    
    
    (95
    )Subordinated deferrable interest debentures
    
    
    (87
    )
    
    
    
    
    
    
    (87
    )Total interest expense
    
    
    (4,794
    )
    
    
    709
    
    
    
    (4,085
    )Net interest income
    
    $
    (912
    )
    
    $
    1,836
    
    
    $
    924
 Interest Income  Investments 
  Interest Income  Loans and Leases
   39




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##### Table of Contents



Interest Expense  Deposits and Borrowings 
    Provision for Loan and Lease Losses
  Allowance for Loan and Lease Losses.
 Noninterest Income
   40




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##### Table of Contents



Noninterest Expense
     Income Tax Expense
  Liquidity and Capital Resources
 Liquidity
     41




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##### Table of Contents



Capital Resources
      Minimum Required
    
    
    Minimum RequiredFor Capital
    
    
    To Be ConsideredActual
    
    
    Adequacy Purposes
    
    
    Well-CapitalizedAmount
    
    
    Ratio
    
    
    Amount
    
    
    Ratio
    
    
    Amount
    
    
    Ratio(Dollars in thousands)At June 30, 2009:Bancorp Rhode Island, Inc.Tier I capital (to average assets)
    
    $
    150,463
    
    
    
    9.74
    %
    
    $
    61,801
    
    
    
    4.00
    %
    
    $
    77,252
    
    
    
    5.00
    %Tier I capital (to risk weighted assets)
    
    
    150,463
    
    
    
    13.46
    %
    
    
    44,701
    
    
    
    4.00
    %
    
    
    67,052
    
    
    
    6.00
    %Total capital (to risk weighted assets)
    
    
    164,467
    
    
    
    14.72
    %
    
    
    89,402
    
    
    
    8.00
    %
    
    
    111,753
    
    
    
    10.00
    %Bank Rhode IslandTier I capital (to average assets)
    
    $
    121,101
    
    
    
    7.84
    %
    
    $
    61,793
    
    
    
    4.00
    %
    
    $
    77,241
    
    
    
    5.00
    %Tier I capital (to risk weighted assets)
    
    
    121,101
    
    
    
    10.84
    %
    
    
    44,685
    
    
    
    4.00
    %
    
    
    67,024
    
    
    
    6.00
    %Total capital (to risk weighted assets)
    
    
    135,105
    
    
    
    12.09
    %
    
    
    89,365
    
    
    
    8.00
    %
    
    
    111,706
    
    
    
    10.00
    %At December 31, 2008:Bancorp Rhode Island, Inc.Tier I capital (to average assets)
    
    $
    150,169
    
    
    
    10.04
    %
    
    $
    59,837
    
    
    
    4.00
    %
    
    $
    74,796
    
    
    
    5.00
    %Tier I capital (to risk weighted assets)
    
    
    150,169
    
    
    
    14.23
    %
    
    
    42,202
    
    
    
    4.00
    %
    
    
    63,302
    
    
    
    6.00
    %Total capital (to risk weighted assets)
    
    
    163,368
    
    
    
    15.48
    %
    
    
    84,403
    
    
    
    8.00
    %
    
    
    105,504
    
    
    
    10.00
    %Bank Rhode IslandTier I capital (to average assets)
    
    $
    118,197
    
    
    
    7.92
    %
    
    $
    59,669
    
    
    
    4.00
    %
    
    $
    74,586
    
    
    
    5.00
    %Tier I capital (to risk weighted assets)
    
    
    118,197
    
    
    
    11.21
    %
    
    
    42,180
    
    
    
    4.00
    %
    
    
    63,269
    
    
    
    6.00
    %Total capital (to risk weighted assets)
    
    
    131,396
    
    
    
    12.46
    %
    
    
    84,359
    
    
    
    8.00
    %
    
    
    105,449
    
    
    
    10.00
    %
  42




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##### Table of Contents



Recent Accounting Pronouncements
 Note 4  Recent Accounting Pronouncements
  43




---



##### Table of Contents



ITEM 3.
    
    Quantitative and Qualitative Disclosures About Market Risk
 Interest Rate Risk
     Estimated Exposureto Net Interest IncomeDollar
    
    
    PercentChange
    
    
    Change(Dollars in thousands)Initial Twelve Month Period:Up 200 bps
    
    $
    75
    
    
    
    .2
    %Down 200 bps
    
    
    (3,240
    )
    
    
    (6.4
    %)
  Asset and Liability
Management
  44




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##### Table of Contents



ITEM 4.
    
    Controls and Procedures
    45




---



##### Table of Contents



PART II. Other Information
 
 Item 1.
    
    Legal Proceedings
  
 Item 1A. Risk Factors
  
 Item 2.
    
    Unregistered Sales of Equity Securities and Use of Proceeds
  
 Item 3.
    
    Defaults Upon Senior Securities
  
 Item 4.
    
    Submission of Matters to a Vote of the Security Holders
   For
    
    
    WithholdNominees:Meredith A. Curren
    
    
    4,275,163
    
    
    
    105,924Bogdan Nowak
    
    
    4,357,706
    
    
    
    23,381Cheryl W. Snead
    
    
    4,199,343
    
    
    
    181,744John A. Yena
    
    
    4,357,706
    
    
    
    23,381
  For
    
    Against
    
    Abstain2,329,721
    
    1,247,008
    
    460,599
  For
    
    Against
    
    Abstain3,673,242
    
    423,471
    
    284,374
  For
    
    Against
    
    Abstain4,364,178
    
    10,150
    
    6,759
 
 Item 5.
    
    Other Information
   46




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##### Table of Contents



Item 6. Exhibits
 10.5
    (b)
    
    Third Amendment to Amended and Restated Non-Employee Director Stock Plan12.1
    
    
    Computation of Ratios of Earnings to Fixed Charges12.2
    
    
    Computation of Ratios of Earnings to Fixed Charges and Preferred
Stock Dividends31.1
    
    
    Certification of Chief Executive Officer pursuant to Section 302
of the Sarbanes-Oxley Act of 200231.2
    
    
    Certification of Chief Financial Officer pursuant to Section 302
of the Sarbanes-Oxley Act of 200232.1
    
    
    Certification of Chief Executive Officer pursuant to 18 U.S.C.
Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
200232.2
    
    
    Certification of Chief Financial Officer pursuant to 18 U.S.C.
Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
  47




---



##### Table of Contents



BANCORP RHODE ISLAND, INC.
 
   Bancorp Rhode Island, Inc.August 7, 2009
    /s/ Merrill W. Sherman(Date)
    Merrill W. ShermanPresident and
Chief Executive OfficerAugust 7, 2009
    /s/ Linda H. Simmons(Date)
    Linda H. SimmonsChief Financial Officer
and Treasurer  48




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##### Table of Contents



Exhibit No.
    
    Description10.5
    (b)
    
    Third Amendment to Amended and Restated Non-Employee Director
Stock Plan12.1
    
    
    Computation of Ratios of Earnings to Fixed Charges12.2
    
    
    Computation of Ratios of Earnings to Fixed Charges and
Preferred Stock Dividends31.1
    
    
    Certification of Chief Executive Officer pursuant to Section
302 of the Sarbanes-Oxley Act of 200231.2
    
    
    Certification of Chief Financial Officer pursuant to Section
302 of the Sarbanes-Oxley Act of 200232.1
    
    
    Certification of Chief Executive Officer pursuant to 18 U.S.C.
Section 1350 as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 200232.2
    
    
    Certification of Chief Financial Officer pursuant to 18 U.S.C.
Section 1350 as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002
  49